Asia's largest low-cost carrier AirAsia plans to enter India after FDI

Asia's largest low-cost carrier AirAsia plans to enter India after FDI



Asia's largest low-cost carrier (LCC) AirAsia may be among the first global players to invest in India with the government allowing foreign airlines to invest in Indian carriers. It is learnt that instead of investing in an existing carrier, the Malaysian LCC is looking at the possibility of a start-up with a strong Indian partner.

AirAsia chief Tony Fernandes said in an email to TOI: "We will make statements in due course." Last Friday, after Cabinet's decision to allow foreign airlines to have up to 49% stake in an Indian carrier, Fernandes had tweeted: "Fantastic news that India has opened up investment to foreign airlines... Great that Indian government has put people first. Will we be in India. Well, let's see."

AirAsia currently flies between Kuala Lumpur and five Indian cities - Kochi, Trichy, Chennai, Kolkata and Bangalore. Additionally it also connects Bangkok with Chennai and Kolkata. The LCC had pulled out of Delhi and Mumbai in March due to high airport charges. The Malaysian LCC already has subsidiaries in Thailand, Indonesia, Philippines and Japan. One of its other subsidiaries, AirAsia X, is possibly the only long-haul LCC in the world.
src-TOI